 has extended the deadline for Unified Payments Interface (UPI) players to adhere to a market cap of 30 percent by two years to December 31, 2024.){kind=link}
The National Payments Corporation of India (NPCI) has extended the deadline for Unified Payments Interface (UPI) players to adhere to a market cap of 30 percent by two years to December 31, 2024.
In November 2022, the NPCI had proposed a 30 per cent volume cap for third-party app providers (TPAP). Currently, there’s no cap on volume and Google Pay and PhonePe hold the market share of about 80 per cent.
“Taking into account the present usage and future potential of UPI, and other relevant factors, the timelines for compliance of existing TPAPs who are exceeding the volume cap, is extended by two (2) years i.e. till December 31, 2024 to comply with the volume cap,” said NPCI in its circular.
Other players such as Amazon Pay, WhatsApp Pay, and others currently have a negligible share because users have chosen to stick with one of the top three UPI apps.
Earlier this year, the Reserve Bank of India (RBI) came out with a consultation paper on charges in payment systems, which made a case for a tiered charge to be imposed on UPI transactions in line with Immediate Payment Service (IMPS) transactions.
The government later issued a statement noting that UPI is a digital public good with immense convenience and productivity gains for the economy, and there are no plans to levy any charges for UPI services.
Since November 2020, UPI volumes have grown by over 230 percent from 2,210 million to 7,309 million in November 2022. Enforcing a market share at this point could have also slowed down the growth momentum for UPI, according to industry experts.
READ ALSO:-
UPI Transactions Record 6 Billion Mark In July